Skip to main content

Who makes (and loses) the money in the Premier League?

In the history of the Premier League, four clubs have reported a pre-tax profit above £100m, namely Wolves £145m (2020/21), Tottenham £139m (2017/18), Brighton £133m (2022/23) and Liverpool £125m (2017/18). They were followed by Leicester City £92m in 2016/17, which was the season when the Foxes reached the Champions League quarter-finals.

It’s worth noting Tottenham’s good track record in terms of profitability, as they have made three of the top eight profits, though it’s a while since they “troubled the scorers”.

While only three clubs have ever reported a profit of more than £100m in the Premier League (excluding exceptionals), losses above £100m have been registered on no fewer than 12 occasions.

The highest ever loss is the £197m made by Manchester City in 2010/11, followed by Chelsea £156m (2020/21), Manchester United £150m (2021/22) and Everton £140m (2019/20).  City are responsible for four of the 14 highest losses, though three of those were recorded during the massive investment phase between 2010 and 2012 following the ADUG acquisition.

The reasons for Everton’s struggles with the Profitability and Sustainability Regulations (PSR) are evident from this analysis, as they have posted four of the 20 worst losses, including three in the top 11. Similarly, Leicester City and Aston Villa both have two of the highest losses.

Premier League clubs have lost more than £100m at the operating level on 20 occasions, though two clubs clearly “lead” the way here.  Only one club has ever lost more than £200m, namely Chelsea, who have done this twice – in the last two sets of accounts with £218m in 2022/23 nearly matching the record £224m in the previous season. The Blues also have the fifth highest operating loss with £159m in 2020/21.

Leeds United lost a hefty £106m at the operating level in 2022/23, which shows that the Premier League is not a panacea for all a club’s problems. Yes, there is a huge increase in revenue (“the £170m play-off final”, yawn), but a promoted club will then have to invest heavily if it wants to have a realistic chance of competing at the higher level.

Manchester City set the Premier League revenue record of £713m in 2022/23, partly thanks to their success on the pitch, as they won the treble. Despite their struggles in the league, Manchester United still generated the second highest revenue in England in 2022/23, though their £648m was a fair way back.

Old Trafford might be in desperate need of refurbishment, but this did not prevent Manchester United generating the highest match day revenue in the Premier League of £136m in 2022/23 – and indeed nine of the top ten in history.

However, Tottenham’s investment in their new stadium means that they are coming up fast on the rails, so they now have the second highest in this revenue stream with £118m, again in 2022/23.  Apart from those two, only one other club has to date generated more than £100m in match day revenue, namely Arsenal, whose highest was £103m in 2022/23.

Chelsea  have by far the highest net transfer spend, as their £542m in 2022/23 is again more than double the next highest, Manchester City £250m (2017/18), followed by Arsenal £230m (2022/23) and Manchester United £218m (2022/23).

Interestingly, Nottingham Forest’s £163m in 2022/23 is the eighth highest ever in the Premier League – and more than the all-time highs at Liverpool £163m (2018/19) and Tottenham £136m (2021/22). This goes a long way to explaining their issues with PSR.

Newcastle United have been active since the arrival of their Saudi owners, notching up two of the top 20 net spends: £150m in 2022/23 and £142m in 2021/22.

The cost of operating at the higher echelons of the Premier League has grown to three-quarters of a billion pounds in 2022/23, as seen by the highest total expenses of £761m at Chelsea and £754m at Manchester City.  Manchester United £681m Liverpool £632m and Tottenham £610m are a fair way back, but also pretty high, though Arsenal were “only” £521m.

 

Comments

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000.  The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts.  Money brought in from football has gone up too. Match day income is

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to depl